Guam – Guam Memorial Hospital’s Chief Financial Officer Allan Urlich has confirmed to Senator Rory Respicio that Calvo’s SelectCare owes $3.2 million dollars to the Hospital.
Senator Respicio announced in a news release Thursday afternoon that Ulrich “has confirmed that the outstanding amount due to GMH from Calvo’s Selectcare is, in fact, more than $3.2 million.”
The admission came in response to a request for clarification from the Senator who on Wednesday sent a letter to GMH Administrator Joseph Verga asking how much Calvo SelectCare owes the hospital.
Senator Respcio wrote his letter following a public hearing Monday evening on the Seantor’s Bill #94 which would require health insurers, as well as MIP and Medicaid, to pay the bills they owe to the hospital within 21 days, instead of the 45 days they are allowed now.
During testimony on that Bill, Calvo Selectcare Chief of Operations, Ray Schnabel, said SelectCare doesn’t owe any money to GMH. When it was pointed out that the GMH website said otherwise, Schnabel said the posting on the hospital’s website was not accurate. But the Senator, in his letter to Verga, points out that the GMH website, on September 14, reported that SelectCare owes nearly $4-million dollars [$3,912,619].
Now that GMH has verified that SelectCare owes $3.2 million to GMH, Senator Respicio is calling on Health Committee Chair Senator Dennis Rodriguez to seek “further clarification from the Guam Memorial Hospital and from Mr. Schnabel with respect to his testimony in order that the Committee Record and Report may accurately reflect the facts regarding the Hospital’s finances.”
The Senator says that “this recent communication from GMH directly contradicts Mr. Schnabel’s public testimony to the Committee.”
PNC News called SelecteCare for comment. Neither Ray Schnabel nor Frank Campillo were available to respond.
READ Senator Respicio’s release below:
Respicio seeks clarification from Calvo’s Insurance
September 26, 2013 – Senator Rory J. Respicio is requesting the Legislature’s Health Committee Chairman to seek clarification from Calvo’s Selectcare Insurance representatives based on statements made at a public hearing Monday evening.
A public hearing was held on September 23, 2013 on Bill No. 94-32 (COR) “An act to amend Sections 9902(b), 9902(d), and 9902(g) of Title 10 Guam Code Annotated relative to prompt payment requirements for health care and health insurance benefits.” This legislation will ensure that doctors in private practice, Guam Memorial Hospital, the new Guam Regional Medical City and other health care providers receive more timely payments from insurance companies by amending the current Prompt Payment Act for health care providers to shorten the maximum amount of time allowed to process normal payments. Under current law, health insurance plans have a maximum of forty-five (45) days to process and pay billings with 12 percent interest charged if payment is not made within that time period. Under Bill No. 94-32 (COR), the time period would be reduced to twenty-one (21) days and the penalty would rise to 16 percent. This standard would apply to the MIP and Medicaid programs as well as private health insurers. Monday night’s hearing generated consensus from the doctors in attendance that this time period should be reduced from forty-five (45) days to thirty (30) days, and not twenty-one (21) days as provide for in the bill and Respicio, the bill’s author, has stated that he is certainly open to that suggestion, as a reference point to continue these discussions, as well as providing for a definition of “clean claim” which has to be consistent with the industry standard.
However, during Monday night’s hearing, Mr. Ray Schnabel, Chief of Operations for Calvo’s Selectcare Insurance, stated publicly that Calvo’s Selectcare does not owe any money to GMH. In fact, when it was pointed out that the GMH website postings indicated otherwise, Mr. Schnabel stated that the postings online are not accurate.
As a result, Respicio wrote to the GMH asking them to clarify their September 14, 2013 posting on their website.
“In response to my inquiry, GMH Chief Financial Officer Alan C. Ulrich has informed me that the hospital has confirmed that the outstanding amount due to GMH from Calvo’s Selectcare is, in fact, more than $3.2 million,” Respicio said in his letter today to Senator Dennis G. Rodriguez, Jr., Chairman of the Committee on Health & Human Services, Senior Citizens, Economic Development and Health Insurance Reform. “This recent communication from GMH directly contradicts Mr. Schnabel’s public testimony to the Committee. In light of these conflicting statements, I would therefore request that your Committee seek further clarification from the Guam Memorial Hospital and from Mr. Schnabel with respect to his testimony in order that the Committee Record and Report may accurately reflect the facts regarding the Hospital’s finances.”
For more information, please contact Senator Respicio’s office at 472-7679.